SHANGHAI, Oct 24 (SMM) – Aluminium prices in Shanghai spot market hit 14,000 yuan/mt on Thursday, as futures rose overnight and as supply tightened ahead of the upgrading of value-added tax system in east China.
The front-month aluminium contract on the Shanghai Futures Exchange for November delivery held in a tight range in morning trades, after a moderate gain overnight.
With an unchanged premium of 90-110 yuan/mt over the SHFE 1911 contract, spot trades were done at 13,980-14,000 yuan/mt in Shanghai in the morning, up 50 yuan/mt from a day earlier.
Spot aluminium was quoted at 13,990-14,010 yuan/mt in Wuxi and Hangzhou.
East China will upgrade its VAT system on Friday, suspending operations related to invoices. This has tightened supply across the spot markets.
In southern markets, spot deals were mostly done at 13,940-13,950 yuan/mt, about 60 yuan/mt lower than those in Shanghai.
Trades across eastern and southern markets were tepid in the morning.